Barkerville Gold Mns Ltd BGMZF

Barkerville Agrees to Sell 0.75% NSR Royalty on its Cariboo

[chillyballs]

... Gold Project for $12,500,000

TORONTO, ON – March 27, 2017 –Barkerville Gold Mines Ltd. (TSXV: BGM) (“Barkerville” or the “Company”) announces that it has entered into letter agreement (“Agreement”) with Osisko Gold Royalties Ltd. (“Osisko”) whereby Osisko has agreed to purchase an additional 0.75% net smelter return (“NSR”) royalty on the Cariboo Gold Project for a cash consideration of $12,500,000 (the “Royalty Purchase”). Upon completion of the Royalty Purchase, Osisko’s total NSR royalty will be 2.25%. The grant of the additional royalty will eliminate the Company’s current obligation to negotiate a gold stream agreement with Osisko upon completion of a feasibility study on its Cariboo Gold Project, which was granted as part of the investment agreement between Osisko and Barkerville dated February 5, 2016.
The Royalty Purchase constitutes a “related party transaction” as defined in Multilateral Instrument 61-101 – Protection of Minority Securityholders in Special Transactions (“MI 61-101”), as an insider of Barkerville is also an insider of Osisko. Such related party transaction is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as at the time the transaction was agreed to, neither the fair market value of the transaction, nor the fair market value of the consideration for, the transaction, insofar as it involves interested parties, exceeded 25% of Barkerville’s market capitalization.
For further information on Barkerville Gold Mines Ltd., please contact:
Chris Lodder
President & Chief Executive Officer
Suite 400-365 Bay Street
Toronto, Ontario, Canada
[e-mail]